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Microsoft unveils finalized EU Data Boundary as European doubt over US grows

Mar 03, 2025 - theregister.com
Microsoft has completed its EU Data Boundary, allowing European customers to store and process data within the EU and EFTA regions. Despite this effort, concerns remain about dependency on a US entity, as the Cloud Act allows US authorities access to data hosted by US companies, regardless of location. Critics argue that Microsoft's move does not fully address issues of data sovereignty and security, as the EU Data Boundary applies only to core services, leaving other services and technical support subject to global processing. Analysts and regional cloud players emphasize the need for true data sovereignty, where data is only subject to the jurisdiction in which it is stored and processed.

The debate highlights the broader issue of Europe's reliance on US cloud providers and the potential risks associated with geopolitical tensions. European cloud vendors and industry experts advocate for investment in sovereign cloud solutions and greater technological autonomy to ensure data protection and strategic independence. The discussion underscores the importance of choice and transparency for European customers in a market with limited alternatives, while cautioning against protectionism that could hinder innovation and growth in the cloud sector.

Key takeaways:

  • Microsoft has completed its EU data boundary to allow European customers to store and process data within the EU, but concerns remain about dependency on a US entity.
  • Critics argue that data residency does not equate to data sovereignty, as US laws like the Cloud Act could still grant US authorities access to data hosted by US companies, regardless of location.
  • There is a call for Europe to invest in a distributed, multi-cloud future to enhance technological autonomy and reduce reliance on US cloud providers.
  • European cloud vendors and analysts emphasize the need for transparency and assurance of data sovereignty to address security and privacy concerns.
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